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Tom Young is here with your Sunday digest.
In 2025, two professors wanted to know if ChatGPT makes people less creative. Thus, they recruited 356 participants and asked them to perform a series of tasks, including One in it They were to Make a toy out of a paper bag, bricks, and a fan.
The researchers forced some of the test subjects to use their creativity. Others were given access to ChatGPT for assistance.
It is not surprising that the regiments without Artificial intelligence has come up with completely unique ideas. (One suggested adopting the brick as a pet, while another suggested disassembling the fan and turning its parts into nunchaku.)
But those using ChatGPT came up with almost the same games. Ninety-four percent of their ideas “shared overlapping concepts,” and nine participants independently named their game the same thing: “Building Breeze Castle.”
It’s as if artificial intelligence is transforming the entire world into the splendor of 2000s beige home interiors.
Emails start with the same sound…
Movie recommendations are lackluster…
And everything has that “competent but forgettable” AI sheen.
In a new offering the legendary quantum specialist Louis Navellier This convergence is also happening on Wall Street, he says. Millions of trading algorithms, advisors, and investors increasingly rely on the same AI-powered tools.
The danger is not that the AI is wrong…
Artificial intelligence makes everyone do the same thing.
As Lewis says, This creates crowded trades, concentrated ownership, and the potential for violent reversals when sentiment changes. Helps explain strange movements in… SpaceX (Spex) Over the past few days, and why ‘groupthink’ seems to have taken over the markets.
In this new free podcast, Lewis calls this 50 million artificial intelligence coordination trapsIt is a phenomenon in which investors all do identical things without realizing it. Popular stocks among AI algorithms continue to rise, while everything else seems to be going nowhere. It is becoming increasingly important to know what AI algorithms recommend.
Now, many investors will not like the idea of basing their decisions on AI-powered algorithms. I’m definitely not comfortable with that.
However, Lewis created a stock rating system that long dealt with this issue by balancing “follow the money” scores with the true fundamentals of the company. Only companies that pass both get his highest “buy” ratings.
And so, for clarity, I’d like to show three of the top-ranked companies in his system in this update. And if you’d like to learn more (and access this system), click here.
Stocks to buy #1: Quality in a risky market
Crowd trading (whether driven by AI or humans) can hide a a lot Of bad behaviour.
A venture capital boom in the mid-2010s allowed Theranos to raise nearly $1 billion, as did truck maker Nikola during the electric vehicle craze of 2021. FTX benefited from a wave of enthusiasm for cryptocurrencies that same year. The founders of the three companies ended up being convicted of fraud.
Now, most AI semiconductor companies are no Criminal enterprises. They are legitimately betting on the technologies that will emerge in the future. But I guarantee we will see some amazing explosions once AI trading tools decide to start selling the hottest chip companies.
To avoid the risk of accidentally buying scams or mediocre companies, I have deliberately favored blue-chip semiconductor companies in this newsletter. It turns out that it’s quite possible to buy established chipmakers for triple-digit gains. ARM Holdings PLC (arm) (+110%) and Coho Company (from) (+120%) are some recent examples.
This week, I’d like to introduce you to another company favored by the Lewis System. It is the bluest of the blue companies Semiconductor stocks This should be good long after the current AI spike fades:
Texas Instruments Inc. (Texan).
Texas Instruments is the world’s largest analog chip maker, specializing in the type of semiconductors that handle messy real-world signals. These are things like pressure… temperature… cell phone signals… human heart rate… and more. Its chips convert this real-world information into clean “0s” and “1s” that digital chips can then process.
Growth was strong. Last quarter, the company reported a 19% increase in revenue, driven by a 30% rise from industrial customers and a 90% jump in data center demand. AI servers use huge amounts of electricity, and hundreds of analog sensors are needed per rack to track power usage, heat, and voltages.
Texas Instruments should also benefit long after the AI data center boom ends, thanks to its significant exposure to self-driving vehicles, humanoid robots, and other AI-powered robots.
The Lewis regime seems to agree. It recently upgraded TXN to a ‘B’, highlighting the company’s strong earnings power and bullish analyst reviews to remain invested for the long term, even as “smart money” jumps in to boost AI in the short term.
Stock to Buy #2: The Second Power Play
In March 2025, it was highlighted Three stocks to buy for the AI revolution.
“These are companies that have learned how to harness the often uncontrollable power of AI,” she wrote. “As the technology world puts its collective foot on the R&D gas, we will see these companies step forward.”
The trio has since returned an average of 117%. Best of all, one of these companies is still in “buy” mode:
Harmonious Energy Systems Company (MPWR).
Monolithic is a leader in power management chips for AI devices. These are tiny semiconductors that use data (often from Texas Instruments) to convert chaotic flows of electricity into the precise voltages the semiconductor needs to function.
This is an incredibly important task. In AI data centers, servers often start up all at once, resulting in dips and spikes in voltage. (This is why turning on the microwave can briefly turn off the house lights.) Without proper regulation, these power surges can burn out any electronic chip connected to the system.
Monolithic products help data centers manage this challenge. The Seattle-based company pioneered putting multiple power management components on a single integrated chip (that’s “monolithic” in the name), and its advanced hardware has become the gold standard for cutting-edge AI chips. Monolithic chips are smaller, run cooler, waste less power, and are more reliable than the patchwork approach used by competitors.
The result is that Monolithic has been growing rapidly. Revenue rose 26% last year and is on track for a 32% gain this year. The company has also managed to gain market share in the voltage regulator chip market, thanks to its advanced designs.
Lewis system agrees. The company earned a top grade of “A” in its quantitative “Follow Money” grade, and valuations have remained reasonable, thanks to rapid growth in its earnings.
Stocks to buy #3: America’s healthcare pivot
Finally, I’d like to highlight one non-AI stock that has a lot of “smart money” buyers:
Oncology Institute (TOI).
This cancer care company has become a potential leader, with strong institutional buying (read: AI-backed investors) and favorable fundamentals.
In brief, the Oncology Institute operates a network of 146 clinics in five states. Health plans pay TOI a flat fee per member per month to handle cancer patients, and TOI wins if it provides care below that fee. It has been a historically unexciting business that relies on acquisitions and partnerships for growth.
However, TOI now has three possible catalysts.
The first is political.
In late April, Health and Human Services Secretary Robert F. Kennedy Jr. testified before Congress, which seemed completely out of character a year ago.
“China is now eating our lunch,” Kennedy, clearly shaken, said before a congressional committee. “They’ve gone from doing 3% of clinical trials to doing 30% of clinical trials… We’re losing scientists, we’re losing our intellectual property… We’re going to lose our biosecurity.”
Since then, the federal government has moved toward a more accommodating stance toward the U.S. health care system. After Kennedy’s testimony, a key FDA committee unanimously recommended its first vaccine since the beginning of the current Trump administration. (An mRNA vaccine, no less!) Several days later, the Department of Health and Human Services announced Operation TrialBlazer, an ambitious project designed to accelerate clinical research.
This is important because TOI makes most of its profits no From direct cancer care, but from the expensive oncology drugs its patients use. Because reimbursement rates are largely set by the Centers for Medicare and Medicaid Services (Content management system), positive attitudes towards the federal government are a clear positive signal for TOI. As terrible as it sounds, one of the easiest ways regulators can use to stimulate cancer drug development is to increase the amount the government is willing to pay for these drugs.
The second is the shift of TOI from negative earnings to positive earnings. In May, the company reiterated that it expects to turn to positive EBITDA this year, and raised its free cash flow to positive $10 million at the midpoint, up from the previous prediction of an outflow of $5 million. This is important because conservative investors often wait for companies to become profitable before buying.
The third reason is TOI’s huge popularity among institutional and “smart money” investors. As mentioned earlier, these traders are beginning to show convergence in their actions. As stocks continue to gain momentum, these AI algorithms typically become… more Willing to buy stocks, no less. The Louis TOI system gives a solid grade of “B” for strong institutional buying, increasing earnings momentum, and very strong sales growth.
The human nature of artificial intelligence
It turns out that investing in AI carries many of the same investment biases that we humans do. In one year 2025 Meta studyA team of European researchers found that large linguistic models:
- Prefer US stocks. 93% of portfolios were invested in US stocks.
- Follow up on risky assignments. 51% of investments exceeded normal allocations.
- Chasing hot stocks. 28% of portfolios were invested in the top three most frequently traded stocks in the past three months
Ask an AI where to invest today, and it might give you a mix of SpaceX and Nvidia Corp. (NVDA), and the latest meme stock.
Professionally designed AI algorithms are often not much better. They’re trained on the same data… they use the same machine learning techniques… and they’re created by the same people.
Not surprisingly, momentum has emerged as the most important factor in predicting stock market returns.
That’s why I think it’s necessary for you Watch Louis Navellier’s latest showoutlining the opportunities and risks involved in this new converged market.
Highs will be much higher than in the past. Algorithms looking for momentum will make sure of that. This means that the lows will also be much more devastating.
If you invest with the public, make sure you do so safely.
Until next week,
Thomas Young, CFA
market analyst, Investor location
